Net Income Reported Under Absorption Costing Will Exceed Net Income

question 35

Multiple Choice

Net income reported under absorption costing will exceed net income reported under variable costing for a given period if:

• A)Production equals sales for that period.
• B)Production exceeds sales for that period.
• C)Sales exceed production for that period.
• D)The variable overhead exceeds the fixed overhead.

---

Definitions:

Analysis Method

A systematic approach used in various fields to examine data or processes in order to draw conclusions or make decisions.